Planning to invest in an iron ore pellet plant in Gildeskål, Norway, Blastr Green Steel took action as of March 9 to supply its green steel plant in Finland.
Currently negotiating with potential suppliers, the company intends to conclude long-term contracts to meet its hydroelectric needs, with the advantage that the Gildeskål area, which was specifically selected for the direct reduction furnace, provides an ice-free port with easy access to iron ore transported by sea from the Norwegian Sea.
The company's objectives include directly converting iron ore pellet feed, which was previously used as raw material for a low carbon steel plant in Inkoo, Finland, into reduction pellets.
Pellets from the Gildeskål region will be separated from Blastr Green Steel's use of coke and aim to reduce CO2 emissions during steel production by 95%. With the achievement of the company's goals, the steel produced is expected to become a supplier, especially in the global steel market, and an important part of the value chain.
The size of the investment is estimated at more than 1 billion Euros ($1.1 billion). In this case, Blastr Green Steel is undertaking one of the largest projects in the Scandinavian region.
It is foreseen that a net investment decision will be made in 2025 depending on the permits and agreements, and it is expected that the facility will be temporarily operational in 2028.